Lebovits v. Chase Manhattan Bank (In Re Lebovits)
Daniel Lebovits, a Chapter 7 debtor, filed an adversary proceeding to discharge his student loan debt, arguing it imposed an "undue hardship." The U.S. Bankruptcy Court for the Eastern District of New York, Judge Dorothy Eisenberg, found that repayment of the $49,040.12 debt would indeed cause undue hardship for Lebovits and his seven dependents. The court applied the three-prong Brunner test, determining that Lebovits could not maintain a minimal standard of living, his financial difficulties would persist, and he had made good faith efforts to repay. Consequently, the court granted the discharge of the student loans.